Crypto.com, the Singapore-based exchange has reportedly claimed that the firm is not in trouble and that its balance sheet is robust, as the cryptocurrency industry has been dealing with upheavals in recent times.
As per reports, Chief Executive Kris Marszalek shot down suggestions that the company was a victim of rival FTX's failure during a live YouTube streaming event this week. He responded to inquiries from the cryptocurrency community by saying that the company matches its reserves to every coin that users have on its platform.
Mr. Marszalek stated that the company will prove the doubters wrong with their actions and that an audited proof of reserves report will be released.
FTX, a popular cryptocurrency exchange, filed for bankruptcy protection last week due to a liquidity crisis, accumulating liabilities of billions of dollars.
Crypto.com is in the headlines following what Mr. Marszalek referred to as 'an error,' wherein around US$400 million (S$550 million) was transferred to the incorrect type of account on another exchange.
Twitter users had reported the transaction as strange, connecting it to claims that Crypto.com was utilizing another cryptocurrency Ether (ETH) to boost its trading volume. The disputed transaction involved the transfer of ETH on October 21 to the company's verified corporate account at Gate.io.
According to Mr. Marszalek, the cash was never in danger of being transported somewhere it couldn't be recovered. This occurred more than three weeks ago. He also added that the bizarre events that have been occurring since FTX's collapse had nothing to do with it.
In a series of tweets over the weekend, the CEO tried to calm worries by claiming that Crypto.com withdrew the money back to its cold wallets over the course of the next few days after the transfer.
Market observers claim that traders are preparing to leave the digital asset market due to concerns that the industry is about to see the crypto equivalent of Lehman Brothers.
Source credit: https://www.straitstimes.com/business/cryptocom-ceo-to-clear-the-air-over-damage-from-ftx-implosion